Cardano (ADA) Eyes $1.20: Is a Breakout or Breakdown Coming Next?
- Cardano (ADA) faces resistance at $0.90, with a move to $1.20 possible if $0.70 support holds
- RSI and MACD flash signs of decreasing momentum after ADA’s early July upsurge.
- ADA open interest and volume decreased substantially, reflecting careful trader sentiment.
Cardano (ADA) is moving in a consolidation phase and experiencing a decline in its price after touching its resistance around $0.90. The ADA price over the last 24 hours is down by 1.78%, and over the last week it is also down by 6.95%.
The general market trend has turned bearish as BTC has started its downward motion towards its key support zone around $112,000. The crypto market is badly affected by this movement, but ADA is still expecting a bullish reversal.
At the time of writing, ADA is trading at $0.7909 with a 24-hour trading volume of $1.83 billion, down by 22.5% over the last 24 hours. The coin has a market capitalization of $28 billion, which is also down by 1.65%.
Also Read: Altcoins Turn to Bitcoin: Cardano and Polkadot Propose Major Treasury Swap
Cardano Eyes $1.20: Can Bulls Regain Control?
The pullback of Cardano (ADA) following a meteoric upsurge in previous days of July. ADA was refused somewhere lower than $0.90 after breaking through $0.63 and $0.70 resistance lines and is now trading around $0.79.
Technical indicators are sending a mixed signal: the Relative Strength Index (RSI) cooled off from the overbought region of 73.31 to 58.73, and a potential bearish crossover is seen on the MACD, indicating a loss of bullish passion.
Looking ahead, ADA has to successfully hold the $0.70–$0.73 region; it would be required for ADA to secure a bullish formation. A successful breakout above $0.90 would offer a pathway towards a test of $1.00 with a subsequent test of $1.20. However, breaking down existing support levels would bring ADA back towards $0.63 or lower.
ADA Open Interest and Volume Fall: What’s Next?
On the derivatives side, sentiment began to cool. Open interest dropped 6.14% to $1.39 billion, with volume dropping 16.10% to $4.37 billion.
The funding rate remains weakly bullish at 0.0110%, reflecting a minimal bullish reversal, but optimism appears to be moving away.
The drop in both OI and volume shows that both traders and investors are unwinding positions, more than likely due to expectations of volatility or correction in the markets.
